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The Three Transformations of IT

IT is entering its third transformation as we learn to grapple with the explosion of data generated by the Internet of Things.

Information technology is now in its third transformation. The first was the digitization of business. The second is the continuing digitization of human experience. The third stage is the digitization of machines.

Each transformation is ongoing, builds upon the others, and may overlap. Thus, some technologies that formed a foundation earlier are still active. For example, the mainframe is still alive and well, even in the time of mobile computing.

Even though specific technologies provide a frame of reference, these transformations span a broad perspective and are not dependent upon any one technology. Please also note that there is not a smooth transition to each transformation, but that elements of a later transformation may be present while the key transformation of an earlier era is still more prominent.

The Three Digital Transformations

Let's take a closer look at all three from a digital perspective:

• Transformation I: Business Workflow and business automation: The beneficiary of this transformation is the business itself. It represents the digitization of traditional business processes most familiarly associated with online transactions processing systems (OLTP); from a software perspective, including operating systems, application-driven software intelligence using third-generation and object-oriented programming languages, database management systems; and from a hardware perspective, mainframes, minicomputers, and servers along with hard disks and magnetic tape; and from a network perspective, leased lines.

• Transformation II: Human Experience: This has two stages.

(i) Interpersonal communication and productivity -- The beneficiaries of this first stage have been employees broadly and directly at all levels; it represents digitization meant to enhance worker productivity and includes office applications, such as e-mail, word processing, presentations and spreadsheets. The key software was office productivity tools, the key computing hardware was the personal computer, and the key networking component was the extension of the local-area network (LAN) within a company's local environment and the extension of the wide-area network (WAN) to the Internet so that employees of one company could communicate with other people (including customers and business partners).

(ii) Virtual digital world (cyberspace) -- The chief beneficiary of this stage is the individual (consumer). Yes, business has benefited tremendously, but the overall result has been the immersion of the individual into the digital world. The Internet is key to this transformation, as is the move to mobile devices.

• Transformation III: Machines: The chief target of this transformation is things (mostly machines). This transformation represents the Internet of things that contain digital intelligence (embedded processors and storage). Some call this the "industrial Internet" but that is limiting, because not only machine-machine interactions can take place, but also machine-biological interactions (such as body sensors). This represents heavy use of data-driven software intelligence, which encompasses sensors and other instrumentation, machine learning, robotics, and content creation (such as online learning).

So What?

Why is this taxonomy useful? Let's look at it from a big data growth perspective as shown in the following illustration. We can see how all three transformations play a role in big data and how our lives are getting more complicated as a result.

Big data is a code word for solutions that seek to make sense of and derive insights from the explosion of data. It consists of both what is happening in Transformation 3, such as the Internet of things, as well as taking advantage of Internet-created data from Facebook, Google searches, and so on. Still, there is more that has to be done to have "things" use this data effectively.

In the Internet of things, most data is generally created by machines autonomously rather than by people individually. Data can come from artifacts, the non-biological natural world, or the biological natural world.

• Artifacts -- The technological creation of the human mind, from everyday items, such as washing machines and refrigerators, to sophisticated high technology, such as smartphones or tablet computers. Your washing machine or refrigerator can communicate problems over the Internet. Your position over time can be collected using GPS on your smartphone and used for a number of purposes (such as helping you locate the nearest Italian restaurant).

• The non-biological natural world -- This includes the weather, astronomical observations and mineral deposits, as well as most of the areas where the hard sciences, such as physics and chemistry, play a big role. Weather data, searching for mineral deposits and the work of CERN all generate big data.

• The biological natural world -- This consists of the spectrum of living (or near living) things), such as plants and animals, and encompasses humans. For example, genomic research is a major contributor.